July 19, 2025 • 10 mins
The Government has announced the funidng of $6 billion worth of construction projects to begin by Christmas.
New and improved roads, school renovations, and hospital revamps - it's all been added to the National Infrastructure Pipeline which is now over $207 billion.
These projects are also expected to create tens of thousands of jobs in the coming months.
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks EDB.
Speaker 2 (00:10):
The government has announced the funding of six billion dollars
worth of construction projects to begin by Christmas. New and
improved roads, school renovations, hospital revamps. It's all been added
to the National Infrastructure Pipeline, which is now at over
two hundred and seven billion dollars. I think you've include
private and all that, so there's a lot going on.
These projects in the coming months are also expected to
(00:32):
create thousands of jobs in the Minister for Economic Growth.
Nikola Willis is with us now. Nicola, good afternoon, Good afternoon, Term,
great to be on the show. Yeah, thanks, thanks for
coming on. I saw this press release which is embargoed
to ten thirty am, and I got quite excited about
the big numbers, and then I saw the word update
(00:53):
in it. So what's actually new in this.
Speaker 3 (00:56):
Well, it's one thing, as you know, to announce a project.
We had a government recently that was pretty good announcements.
It's another thing to actually break ground, have people in
jobs with shovels in hives and so what this announcement
today is about as saying there are six billion dollars
worth of infrastructure projects that will be breaking ground before Christmas.
(01:20):
That means spades in the ground, jobs throughout the country
are stronger economy and we are getting those projects done
faster and better, and that's actually good for the economy
in the long run too. So we've done an exercise
of showing New Zealand where all those projects are around
the country, the money that's been allocated for them. And look,
(01:40):
the advice is for every billion you're spending, that equates
to about four and a half thousand jobs. So this
is literally thousands of jobs in our communities, activity firms,
busy diggers, digging, bulldozers, shoving.
Speaker 2 (01:54):
So are there any actually new projects that would be
a surprise to people who follow the stuff really closely
or is it pretty much just wrapping a nice little
bow around it and saying, right, we're underway.
Speaker 3 (02:03):
Well, these are projects there that people are aware. We're
being planned in some cases for years, but it's another
thing to get it consented, to have the contract signed,
to have the contractors are signed, and to have them
underway and so on the list of things that are
really varied. You know, stuff at Auckland Hospital, it's things,
(02:25):
it's roads, three and it's three point four billion dollars
worth of roads and Drury and Tornga and Utucky and
Melling in christ Church. It's a plant health lab in Auckland.
It's a temporary court in Papakura. So there's a range
of projects there. You know, the government has a finger
and a lot of pies. It's classrooms and rebuilds across
(02:48):
the country, which we're doing particularly well. We've got average
cost of the classroom down significantly. It was around one
point two millions under the last government. We've got that
cost down to more like six hundred and twenty k.
That means we can build a lot more classrooms and
that's exactly what we'll be doing in the coming months.
Speaker 2 (03:06):
How many new jobs do you think it really will create? It,
I mean it's easy to sort of speculate about numbers,
but what do you realistically expect that you'd want to
see created.
Speaker 3 (03:15):
Well, realistically, I expect that when these projects are breaking ground,
that will mean that the contract is involved will be
hiring hundreds of people per project and over time that
will add up to thousands of jobs. Absolutely, I think
that is realistic to expect, and we know that our
construction industry has gone through a tough period because interst
(03:37):
rates got so high. That means a lot of projects
in the private sector no longer stack up because of
course developers need to borrow to do those big housing developments,
those big shopping malls, and they're less likely to borrow
when interest rates are high. But interest rates have now
come down a lot, So we're doing this public investment
at the same time as we can see that the
(03:58):
private sector is going to start recovering too, and we're
pushing that along by saying we will fast track your projects.
And we've got quite a few fast track projects that
are set to start in the next six months if
they're approved as well.
Speaker 2 (04:12):
You mentioned earlier on about you know, like the last
government being announcements of announcements. One of the things that
I worry about, and I think it would be a
question many people would ask about, is how confident are
we that we actually It's one thing to announce these
projects and to say we're going to be creating all
these jobs, but are you confident that we have the
skilled workers and resources to actually deliver those Yes.
Speaker 3 (04:34):
I absolutely am, because as you know, we are at
the moment unemployment is higher than anyone would like it
to be. And we have a construction sector that has
really peered back on its activity following the economic downturn
that occurred, so we're now on rebuild mode. This is
a government that is lighting the files of growth and
(04:56):
we know that there are skilled capable workers, contractors' ferns
who are looking for work. And that's where the government
making it very clear these projects are starting before Christmas,
they will be geared up to do them.
Speaker 2 (05:11):
What about what about if there's a change of government
and in terms of certainty that these projects are going
to continue.
Speaker 3 (05:19):
Well, tell you know what I always say to people
who raise that with me and they're really concerned and
they say, oh, look, there could be a change. I say, well,
there's a simple way through it. Don't change the government,
which I sincerely believe. I think a change of government
would put New Zealand's economic recovery at significant risk. But
at the same time, what we have published earlier this
year is a draft of a thirty year infrastructure plan
(05:42):
because we recognize that New Zealanders want to see a
bit more certainty and continuity in the infrastructure we're building
for our country for the future. Some of these projects
do take years to get off the ground, and you
don't want a change of government to put all of
that at risk. So we do recognize that need. We
have been engaging with the opposition on that, but it
will always be the case. We're data are at talking,
(06:04):
and we're better at doing.
Speaker 2 (06:06):
When you engage with them, what feedback have you got.
Speaker 3 (06:11):
Look, what they have said is that they also see
that there is a need for a more joined up
consensus on what the big infrastructure projects should be and
what we have discussed with them For that to make sense,
we're going to have to have some discipline in the system,
which is that projects don't make it onto the list
unless they actually been well analyzed that they make sense,
(06:34):
so that an incoming government doesn't look at it and go, oh,
my goodness, this project's an absolute dog and the costing
is out of control and it should never have been
on the list in the first place. So it does
require us to be pretty transparent, to have some good
processes in place, to have some independence and some of
the selection and sequencing of these projects. And so we've
been working hard behind the scenes to talk to put
those things in place.
Speaker 2 (06:56):
What about confidence with budgets in terms of blowout you know,
the potential blowouts and overruns and all that.
Speaker 3 (07:03):
Sort of thing. Yeah, it's right, and so what that's
about is making sure that we're not actually creating conditions
for a blowout and cost So that's being really clear
what are all the things that are going to cost
on this project, you know the case in point the theories.
It's one thing to say this is how much the
ships will cost, Well you better also work out how
(07:25):
much it's going to cost to put in all the
port infrastructure and all of the other costs. So it's
being thorough in your costing. The other part that has
led to huge cost blowouts in New Zealand in recent
years is if you say you want to do a
project and then it has to wade through court for
three years to get consent. That adds huge amounts of costs.
And as we know, a project delayed is a project
(07:47):
made more expensive because things aren't getting cheaper in the future,
you're getting more expensive. So actually timely delivery of projects help.
Speaker 2 (07:55):
As you make mention briefly, and that it's all about
also not all about this, but you mentioned it helps
the cost of living. How does exactly does a new
road or hospital translate into relief for those household budgets
and the short to medium term or are you talking longer?
Speaker 3 (08:09):
Well, in the short term, we know that when we
have more people in employment, that is their household having
more meanings with which to afford the costs that their
family faces. That's a pretty simple reality. The cost of
living is two things. It's one how much things cost.
It's two how much learning? Can you keep up with
those costs? Can you actually get a heat because your
(08:31):
incomes rising faster than prices. So infrastructure delivers that in
the short term through the jobs and contracts that it
creates for our businesses and the people in the community.
In the medium term, when we have roads that allow
people to get around quicker, they can be more productive,
and when they are more productive, they can earn more.
You know. The classic case is the YKFO Expressway. That
(08:55):
meant that people working between Auckland and Hamilton could just
get more jobs done in a day. When people are
wasting time and traffic, they're not able to do.
Speaker 2 (09:04):
The liver of how just a couple more questions, lots
of money being spent, does any of this have an
inflationary pressure at all.
Speaker 3 (09:12):
No, because it's all within our fiscal plan, which we've
been really careful to make sure we're taking pressure off
inflation and we've really rained things in. You know, New
Zealand went through a period of excessive spending beyond our means,
really building up the debt, and we've now put in
place a fiscal plan that says actually we've got to
(09:32):
type in the delta bit, but within that we are
prioritizing infrastructure delivery because we know that this is the
stuff that is essential to New Zealand having a better
economic future. And so it's all about how you prioritize.
You've got to stop some silly stuff, but you've got
to keep building smart infrastructure.
Speaker 2 (09:50):
Just getting back look at it is a pretty spectacular
list of projects to get going. What is the project
that you're really looking forward to seeing with a degree
of maybe I don't know if it could have even
just be personal satisfaction.
Speaker 3 (10:03):
Well, look, the project that I I think is really
important for my region. I'm from the lower part of
the North Island is the Utucky Tullivan upgrade of the
State Highway one. And the reason that's important, it's not
just for the people of that region getting to and
from working home. It's that's a major route for our
(10:23):
exporters getting their products to market. You know, that's where
we've got vegetable growers, farmers, people who are trying to
get freight around and by standing that road, they're just
going to spend less time wasted, they're going to get
their goods to market more efficiently, and I think it's
going to be really positive for the region.
Speaker 2 (10:40):
Excellentick Nicola. I really appreciate your time. The staff knowon
enjoy the rest of the day.
Speaker 1 (10:45):
For more from the Weekend Collective, listen live to News
Talk ZB weekends from three pm, or follow the podcast
on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks EDB.
Speaker 2 (00:10):
The government has announced the funding of six billion dollars
worth of construction projects to begin by Christmas. New and
improved roads, school renovations, hospital revamps. It's all been added
to the National Infrastructure Pipeline, which is now at over
two hundred and seven billion dollars. I think you've include
private and all that, so there's a lot going on.
These projects in the coming months are also expected to
(00:32):
create thousands of jobs in the Minister for Economic Growth.
Nikola Willis is with us now. Nicola, good afternoon, Good afternoon, Term,
great to be on the show. Yeah, thanks, thanks for
coming on. I saw this press release which is embargoed
to ten thirty am, and I got quite excited about
the big numbers, and then I saw the word update
(00:53):
in it. So what's actually new in this.
Speaker 3 (00:56):
Well, it's one thing, as you know, to announce a project.
We had a government recently that was pretty good announcements.
It's another thing to actually break ground, have people in
jobs with shovels in hives and so what this announcement
today is about as saying there are six billion dollars
worth of infrastructure projects that will be breaking ground before Christmas.
(01:20):
That means spades in the ground, jobs throughout the country
are stronger economy and we are getting those projects done
faster and better, and that's actually good for the economy
in the long run too. So we've done an exercise
of showing New Zealand where all those projects are around
the country, the money that's been allocated for them. And look,
(01:40):
the advice is for every billion you're spending, that equates
to about four and a half thousand jobs. So this
is literally thousands of jobs in our communities, activity firms,
busy diggers, digging, bulldozers, shoving.
Speaker 2 (01:54):
So are there any actually new projects that would be
a surprise to people who follow the stuff really closely
or is it pretty much just wrapping a nice little
bow around it and saying, right, we're underway.
Speaker 3 (02:03):
Well, these are projects there that people are aware. We're
being planned in some cases for years, but it's another
thing to get it consented, to have the contract signed,
to have the contractors are signed, and to have them
underway and so on the list of things that are
really varied. You know, stuff at Auckland Hospital, it's things,
(02:25):
it's roads, three and it's three point four billion dollars
worth of roads and Drury and Tornga and Utucky and
Melling in christ Church. It's a plant health lab in Auckland.
It's a temporary court in Papakura. So there's a range
of projects there. You know, the government has a finger
and a lot of pies. It's classrooms and rebuilds across
(02:48):
the country, which we're doing particularly well. We've got average
cost of the classroom down significantly. It was around one
point two millions under the last government. We've got that
cost down to more like six hundred and twenty k.
That means we can build a lot more classrooms and
that's exactly what we'll be doing in the coming months.
Speaker 2 (03:06):
How many new jobs do you think it really will create? It,
I mean it's easy to sort of speculate about numbers,
but what do you realistically expect that you'd want to
see created.
Speaker 3 (03:15):
Well, realistically, I expect that when these projects are breaking ground,
that will mean that the contract is involved will be
hiring hundreds of people per project and over time that
will add up to thousands of jobs. Absolutely, I think
that is realistic to expect, and we know that our
construction industry has gone through a tough period because interst
(03:37):
rates got so high. That means a lot of projects
in the private sector no longer stack up because of
course developers need to borrow to do those big housing developments,
those big shopping malls, and they're less likely to borrow
when interest rates are high. But interest rates have now
come down a lot, So we're doing this public investment
at the same time as we can see that the
(03:58):
private sector is going to start recovering too, and we're
pushing that along by saying we will fast track your projects.
And we've got quite a few fast track projects that
are set to start in the next six months if
they're approved as well.
Speaker 2 (04:12):
You mentioned earlier on about you know, like the last
government being announcements of announcements. One of the things that
I worry about, and I think it would be a
question many people would ask about, is how confident are
we that we actually It's one thing to announce these
projects and to say we're going to be creating all
these jobs, but are you confident that we have the
skilled workers and resources to actually deliver those Yes.
Speaker 3 (04:34):
I absolutely am, because as you know, we are at
the moment unemployment is higher than anyone would like it
to be. And we have a construction sector that has
really peered back on its activity following the economic downturn
that occurred, so we're now on rebuild mode. This is
a government that is lighting the files of growth and
(04:56):
we know that there are skilled capable workers, contractors' ferns
who are looking for work. And that's where the government
making it very clear these projects are starting before Christmas,
they will be geared up to do them.
Speaker 2 (05:11):
What about what about if there's a change of government
and in terms of certainty that these projects are going
to continue.
Speaker 3 (05:19):
Well, tell you know what I always say to people
who raise that with me and they're really concerned and
they say, oh, look, there could be a change. I say, well,
there's a simple way through it. Don't change the government,
which I sincerely believe. I think a change of government
would put New Zealand's economic recovery at significant risk. But
at the same time, what we have published earlier this
year is a draft of a thirty year infrastructure plan
(05:42):
because we recognize that New Zealanders want to see a
bit more certainty and continuity in the infrastructure we're building
for our country for the future. Some of these projects
do take years to get off the ground, and you
don't want a change of government to put all of
that at risk. So we do recognize that need. We
have been engaging with the opposition on that, but it
will always be the case. We're data are at talking,
(06:04):
and we're better at doing.
Speaker 2 (06:06):
When you engage with them, what feedback have you got.
Speaker 3 (06:11):
Look, what they have said is that they also see
that there is a need for a more joined up
consensus on what the big infrastructure projects should be and
what we have discussed with them For that to make sense,
we're going to have to have some discipline in the system,
which is that projects don't make it onto the list
unless they actually been well analyzed that they make sense,
(06:34):
so that an incoming government doesn't look at it and go, oh,
my goodness, this project's an absolute dog and the costing
is out of control and it should never have been
on the list in the first place. So it does
require us to be pretty transparent, to have some good
processes in place, to have some independence and some of
the selection and sequencing of these projects. And so we've
been working hard behind the scenes to talk to put
those things in place.
Speaker 2 (06:56):
What about confidence with budgets in terms of blowout you know,
the potential blowouts and overruns and all that.
Speaker 3 (07:03):
Sort of thing. Yeah, it's right, and so what that's
about is making sure that we're not actually creating conditions
for a blowout and cost So that's being really clear
what are all the things that are going to cost
on this project, you know the case in point the theories.
It's one thing to say this is how much the
ships will cost, Well you better also work out how
(07:25):
much it's going to cost to put in all the
port infrastructure and all of the other costs. So it's
being thorough in your costing. The other part that has
led to huge cost blowouts in New Zealand in recent
years is if you say you want to do a
project and then it has to wade through court for
three years to get consent. That adds huge amounts of costs.
And as we know, a project delayed is a project
(07:47):
made more expensive because things aren't getting cheaper in the future,
you're getting more expensive. So actually timely delivery of projects help.
Speaker 2 (07:55):
As you make mention briefly, and that it's all about
also not all about this, but you mentioned it helps
the cost of living. How does exactly does a new
road or hospital translate into relief for those household budgets
and the short to medium term or are you talking longer?
Speaker 3 (08:09):
Well, in the short term, we know that when we
have more people in employment, that is their household having
more meanings with which to afford the costs that their
family faces. That's a pretty simple reality. The cost of
living is two things. It's one how much things cost.
It's two how much learning? Can you keep up with
those costs? Can you actually get a heat because your
(08:31):
incomes rising faster than prices. So infrastructure delivers that in
the short term through the jobs and contracts that it
creates for our businesses and the people in the community.
In the medium term, when we have roads that allow
people to get around quicker, they can be more productive,
and when they are more productive, they can earn more.
You know. The classic case is the YKFO Expressway. That
(08:55):
meant that people working between Auckland and Hamilton could just
get more jobs done in a day. When people are
wasting time and traffic, they're not able to do.
Speaker 2 (09:04):
The liver of how just a couple more questions, lots
of money being spent, does any of this have an
inflationary pressure at all.
Speaker 3 (09:12):
No, because it's all within our fiscal plan, which we've
been really careful to make sure we're taking pressure off
inflation and we've really rained things in. You know, New
Zealand went through a period of excessive spending beyond our means,
really building up the debt, and we've now put in
place a fiscal plan that says actually we've got to
(09:32):
type in the delta bit, but within that we are
prioritizing infrastructure delivery because we know that this is the
stuff that is essential to New Zealand having a better
economic future. And so it's all about how you prioritize.
You've got to stop some silly stuff, but you've got
to keep building smart infrastructure.
Speaker 2 (09:50):
Just getting back look at it is a pretty spectacular
list of projects to get going. What is the project
that you're really looking forward to seeing with a degree
of maybe I don't know if it could have even
just be personal satisfaction.
Speaker 3 (10:03):
Well, look, the project that I I think is really
important for my region. I'm from the lower part of
the North Island is the Utucky Tullivan upgrade of the
State Highway one. And the reason that's important, it's not
just for the people of that region getting to and
from working home. It's that's a major route for our
(10:23):
exporters getting their products to market. You know, that's where
we've got vegetable growers, farmers, people who are trying to
get freight around and by standing that road, they're just
going to spend less time wasted, they're going to get
their goods to market more efficiently, and I think it's
going to be really positive for the region.
Speaker 2 (10:40):
Excellentick Nicola. I really appreciate your time. The staff knowon
enjoy the rest of the day.
Speaker 1 (10:45):
For more from the Weekend Collective, listen live to News
Talk ZB weekends from three pm, or follow the podcast
on iHeartRadio.
Popular Podcasts
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.